Reimagining the Practice and Purpose of Pay: An Introduction to CBR's Special Issue on Responsible Rewards

Abstract

Compensation systems are under increased scrutiny recently—not only for their role in motivating performance but also for their impact on organizational ethics, social equity, environmental sustainability, and stakeholder trust (c.f. Hou et al., 2025; Phung et al., 2023; & Zhu et al., 2024). In this context, the notion of responsible rewards gained traction as organizations and compensation professionals reimagine the purposes and consequences of pay. No longer confined to questions of market competitiveness or performance measurement, today’s reward systems are expected to reflect broader societal expectations, support long-term value creation, and avoid reinforcing harmful behaviors or inequities (McMullen & Dahle, 2024). Responsible rewards may encompass, but are not limited to, the integration of ESG (Environmental, Social, and Governance) goals into incentive plans, ethical boundaries in pay-for-performance design, inclusion and fairness in executive compensation governance, the encouragement of green and prosocial behaviors among employees, and the reduction of systemic disparities through fair pay and living wages. This Special Issue of Compensation & Benefits Review brings together new research and critical reflection on the promises, pitfalls, and practicalities of building more responsible reward systems.